Alcoa (AA) vs Solstice Advanced Materials Inc. (SOLS)

Alcoa and Solstice Advanced Materials Inc. are both in the Basic Materials sector (Aluminum and Specialty Chemicals). Alcoa is the larger, with a market value of $10.1B against $8.8B — 1.2× the size. Alcoa trades at the lower P/E: 6.6× against 26.5×. Alcoa grew revenue faster over the last twelve months: 11.2% against 9.62%. Alcoa has the higher net margin (10.7% vs 7.79%) and the higher return on invested capital (13.8% vs 13.1%). Both pay a dividend; Alcoa yields more (1.04% vs 0.40%). Across the 21 metrics below, Alcoa leads on 18 and Solstice Advanced Materials Inc. on 3.

Valuation

Metric AA SOLS
P/E 6.61 26.54
P/S 0.71 2.11
P/B 1.24 5.60
Price to free cash flow 11.32 20.56
EV/EBITDA 3.89 12.57
EV/Sales 0.74 2.44
Earnings yield 15.13% 3.77%
Free cash flow yield 8.83% 4.86%

Profitability

Metric AA SOLS
Gross margin 21.93% 30.90%
Operating margin 13.33% 14.69%
Net margin 10.68% 7.79%
Free cash flow margin 6.29% 20.13%
Return on equity 20.82% 13.67%
Return on assets 8.41% 5.74%
Return on invested capital 13.77% 13.13%

Growth

Metric AA SOLS
Revenue growth (TTM) 11.22% 9.62%
EPS growth (last fiscal year) 1,600.00% (60.91%)
Revenue growth, 5-year CAGR 6.68% —
Net income growth, 5-year CAGR 0.00% —

Health

Metric AA SOLS
Debt to equity 0.58 1.31
Current ratio 2.31 1.38
Net debt to EBITDA 0.90 1.85

Dividend

Metric AA SOLS
Dividend yield 1.04% 0.40%
Payout ratio 0.07 0.11

Size

Metric AA SOLS
Market cap 10.14b 8.75b

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